Even though the original version of this article messed the numbers up a bit, there is no denying that digital distribution is catching up to retail sales. In the second quarter, NPD estimates that digital revenues totaled $1.74 billion, exceeding the $1.44 billion spent on physical sales. That compares to the first quarter when the split favored physical sales of $2 billion, which topped digital sales of $1.85 billion. While physical distribution in retail stores and packaged goods may be shifting to digital distribution over broadband connections and wireless airwaves, overall spending seems to be level.